Which of the following is true?
A) As the national debt increases relative to GDP,interest on the debt relative to GDP declines.
B) As the national debt decreases relative to GDP,interest on the debt relative to GDP rises.
C) As the national debt increases relative to GDP,interest on the debt relative to GDP rises.
D) The national debt relative to GDP has been constant in recent years.
E) The national debt relative to GDP has been falling in the last few years.

Question

Quizplus · Accepted Answer

As the national debt increases relative to GDP, interest on the debt relative to GDP increases because the government has to pay more interest on a larger debt.

Which of the Following Is True